Answer:
Answer for the question:
Bond Calculations: 1) Avon Products Note 06.5% Coupon: 6.500% Maturity 5 years Rating: Moodys: BAA3 Price: $108.093 Calculate: Yield to maturity S&P: BBB- 2) SAFEWAY INC SR NT 5.00000% Coupon: 5.000% Maturity: 5 years Rating: Moodys'BAA3 Price: $101.180 S&P: BBB a) Calculate: Yield to maturity b) Suppose the bond is callable in 3 years at $ 110. Using the price above find the yield to call Hint: use the FV to be $110 instead of $ 100. And the time to maturity 3 years instead of 5 years
Is given in the attachment.
Explanation:
Answer:
1. $490,000
2. $481,000
Explanation:
1. The computation of the total amount which is included in the balance sheet is shown below:
= Accounts receivable + Accounts receivable, long term + Land + Patents
= $215,000 + $118,000 + $63,000 + $94,000
= $490,000
In this the land and patents are recorded in the historical rates
2. The computation of the total amount which is included in the balance sheet is shown below:
= Accounts receivable + Accounts receivable, long term + Land + Patents
= $215,000 + $118,000 + $59,000 + $89,000
= $481,000
In this all items are recorded in the current rates
Answer:
d. $394,767
Explanation:
For computing the amount of deposit at the end we need to apply the future value formula i.e to be shown in the attachment
Given that,
Present value = $0
Rate of interest = 7.5% ÷ 12 months = 0.625%
NPER = 25 years × 12 months = 300 months
PMT = $450
The formula is shown below:
= -FV(Rate;NPER;PMT;PV;type)
So, after applying the above formula, the future value is $394,767
B I’m pretty sure have a great day
Answer:
A base salary of $500,000 plus a stock option package for 250,000 shares, with 20% of shares maturing at the end of each of the next five years
Explanation:
This options will force the employee to stay in the firm for at least 5 years
Also it will tie his contribution to the market share
So their interest will be alinged with the company's interest of increasing his value and project better earnings through the five years program.